Morning Movers: Sonnet BioTherapeutics skyrockets after $888M combination

Stock futures are lower as President Trump announced 30% tariffs on imports from the EU and Mexico effective August 1, following last week’s copper, Canada, and Japan tariff moves. Investors are closely monitoring inflation and producer/import price data due this week, along with the start of Q2 earnings from major banks.

European equities fell approximately 0.5%, though the UK’s FTSE 100 held steady thanks to its trade deal buffer. Asia also dipped amid U.S. tariff jitters, while gold and Bitcoin increased as safe-haven and speculative instruments drew attention. Gold surged to a three-week high and silver hit near 14-year peaks. Oil edged up amid concerns over U.S. sanctions on Russia and output decisions from Saudi Arabia. Bond markets sold off with U.S. and German yields climbing on political risks to central bank independence, as Trump continued slamming Fed Chair Powell.

Despite the tariff spotlight, tech remains resilient and crypto-related names are trading higher following Bitcoin’s move past $122,000.

Hedge funds reduced exposure to banks this week, instead rotating into consumer staples, the largest move in almost two years, suggesting a shift to defensives as tariff and inflation concerns linger.

Markets are treading cautiously as tariffs weigh on global trade sentiment, but underlying strength in tech, crypto, commodities, and defensive sectors is helping cushion the impact.

In pre-market trading, S&P 500 futures fell 0.24%, Nasdaq futures fell 0.22% and Dow futures fell 0.26%

Check out this morning’s top movers from around Wall Street, compiled by The Fly. Also, subscribe to the daily Fly By on YouTube if you want to know how the markets will open, which stocks will be moving and why.

HIGHER –

• Sonnet BioTherapeutics (SONN) up 144% after announcing that it has entered into a definitive agreement for a business combination with Rorschach I LLC
• Lionsgate (LION) up 1% after Bloomberg reported Legendary Entertainment, which is backed by Apollo Global (APO), is considering a takeover of the company
• Kenvue (KVUE) up 6% after reporting CEO Thibaut Mongon has departed the company and providing Q2 guidance
• Ansys (ANSS) and Synopsys (SNPS) up 6% and 3% after Reuters wrote that China’s market regulator has conditionally approved the acquisition of Ansys by Synopsys
• Takeda (TAK) up 3% after reporting that all primary and secondary endpoints were met in two Phase 3 randomized, double-blind, placebo-controlled studies of oveporexton
• AstraZeneca (AZN) up 1% after announcing its BaxHTN trial met all primary and secondary endpoints

LOWER –

• Affirm (AFRM) down 3% after BTIG downgraded the stock to Neutral from Buy 
• Rivian (RIVN) down 2% after Guggenheim downgraded shares to Neutral from Buy